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Arboria is floundering in the global marketplace, incurring devastating losses in market position and profits. The problem is not Arboria’s products, but Arboria’s trade policy. Arboria faces the prospect

of continuing economic loss until Arborian business and political leaders recognize the fundamental

differences between Arborian and foreign economic systems. Today the key trade issue is not free trade versus protectionism but diminishing trade versus expanding trade.

Arboria is operating with an obsolete trade policy, an artifact of the mid-1940s when Arboria and

Whorfland dominated the global economy, tariffs were the principal obstacle to trade, and Arborian

supremacy was uncontested in virtually all industries. In the intervening decades, economic circumstances have shifted radically. Arborian trade policy has not.

Today, Arboria’s trade policy seems paralyzed by the relentless conflict between proponents of “free” and “fair” trade. The free traders argue that

Arborian markets should be open, and the movement of goods and services across national borders unrestrained. The fair traders assert that access to

Arborian markets should be restricted until Arborian businesses are granted equal access to foreign markets. They contend that free trade is impossible

while other nations erect barriers to Arborian exports.

Both are correct: fair trade requires equal access and equal access leads to free trade. But both sides base their positions on the same two outdated premises:

1.Global commerce is conducted under the terms of

the General Agreement on Tariffs and Trade (GATT) and dominated by Arboria and similar economic

systems abroad.

2.Multilateral negotiations are the most effective way to resolve pressing trade issues.

Both assumptions are wrong. The 40-year-old GATT

now covers less than 7 percent of global commerce. World trade is no longer dominated by the free-

trade economies; nearly 75 percent is conducted by economic systems operating with principles at odds with those of Arboria. Forging a multilateral trade policy consensus among so many diverse

economic systems has become virtually impossible. And while multilateral talks drag on, Arboria misses opportunities for trade expansion.

The author implies that the main obstacle to a truly effective Arborian trade policy is the


    A. weak position that Arboria currently holds in the global marketplace

    B. inability of Arborian leaders to recognize that foreign economic systems are based on principles fundamentally different from their own

    C. dominance of the supporters of free trade in the conflict between free-trade and fair- trade advocates

    D. apparent inability of Arborian industries to produce goods that are competitive in the world market

    E. protectionism that characterizes the foreign trade policies of so many of Arboria’s trade partners

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答案:
B

Correctly&nb

sp;answering this question requires you to infer from the given information what the main obstacle to an effective Arborian trade policy is. The correct response is to be found in the first paragraph of the passage, which contains the following sentence: “Arboria faces

the prospect of continuing economic loss until Arborian business and political leaders

recognize the fundamental differences between Arborian and foreign economic systems.”

The phrase continuing economic loss indicates, from the author’s perspective, an

ineffective trade policy. The until-clause signifies that a necessary condition of improving the situation is a recognition by leaders that Arborian and foreign economic systems are fundamentally different. The final paragraph emphasizes that such differences exist: “75 percent [of world trade] is conducted by economic systems operating with principles at

odds with those of Arboria.”

A. The passage does not state or imply that Arboria has a “weak position” in global trade; rather, it emphasizes that Arboria can gain a much stronger position and “misses

opportunities for trade expansion.”


B. Correct. See the detailed analysis given above.

C. The passage nowhere states or implies that the free-trade advocates are dominant in the dispute with fair-trade advocates, even though the passage suggests that developed economies such as Arboria and Whorfland have long practiced free trade and been

dominant in global trade.

D. The passage neither states nor implies that the goods produced by Arborian industries are deficient in quality or are overpriced, but it does suggest that some countries that export to Arboria have trade barriers, such as tariffs, that impede importation of

Arborian products.

E. The passage suggests that some trading partners of Arboria have trade barriers

impeding imports from Arboria, but the passage asserts the following: “Today the key trade issue is not free trade versus protectionism but diminishing trade versus expanding trade.”

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